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Business Segment Information
 3 Months Ended
Mar. 31, 2013
Business Segment Information
8. Business Segment Information

The Company determines and presents operating segments based on the information that is internally provided to the Chief Executive Officer and Chief Financial Officer, who together are considered the Company’s chief operating decision maker, in accordance with FASB ASC 280-10 Disclosures about Segments of an Enterprises and Related Information.

The Company is a contract research organization (“CRO”), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. It specializes in the strategic development, management and analysis of programs that support all stages of the clinical development process - from compound selection to Phase I-IV clinical studies.  The Company earns revenues by providing a number of different services to its customers. These services, which are integral elements of the clinical development process, include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. The Company has the expertise and capability to conduct clinical trials in most major therapeutic areas on a global basis and has the operational flexibility to provide development services on a stand-alone basis or as part of an integrated “full service” solution.  The Company has expanded predominately through organic growth, together with a number of strategic acquisitions to enhance its expertise and capabilities in certain areas of the clinical development process.

Historically, the Group organized, operated and assessed its business in two segments, the clinical research segment and the central laboratory segment.  In 2013 the Group have consolidated and reclassified the results of the former central laboratory segment into the clinical research segment as the central laboratory segment does not reach the thresholds of net revenue, income from operations and total assets as a requirement for being reported as a separate segment.  Management have determined that its clinical research and central laboratory businesses operate in the same clinical research market, have a similar customer profile, are subject to the same regulatory environment, support the development of new clinical therapies and are so economically similar, reporting their results on an aggregated basis would be more useful to users of the Company’s financial statements.

The Company's areas of operation outside of Ireland include the United States, United Kingdom, France, Germany, Italy, Spain, The Netherlands, Sweden, Belgium, Poland, Czech Republic, Lithuania, Latvia, Russia, Ukraine, Hungary, Israel, Romania, Canada, Mexico, Brazil, Colombia, Argentina, Chile, Peru, India, China, South Korea, Japan, Thailand, Taiwan, Singapore, The Philippines, Australia, New Zealand, and South Africa.

Segment information as at March 31, 2013 and December 31, 2012 and for the three months ended March 31, 2013 and March 31, 2012 is as follows:

a) The distribution of net revenue by geographical area was as follows:

   
Three Months Ended
  
   
March
31,
    
March
31,
  
   
2013
    
2012
  
   
(in thousands)
  
Ireland
   $ 60,994     $ 28,995  
Rest of Europe
     85,036       86,044  
U.S.
     135,475       107,747  
Rest of World
     35,284       29,547  
                 
Total
   $ 316,789     $ 252,333  
* All sales shown for Ireland are export sales.

b) The distribution of income from operations, including restructuring and other items, by geographical area was as follows:

   
Three Months Ended
  
   
March 31,
    
March 31,
  
   
2013
    
2012
  
   
(in thousands)
  
Ireland
   $ 12,016     $ (6,296 )
Rest of Europe
     3,786       9,721  
U.S.
     5,537       6,557  
Rest of World
     1,657       1,750  
                 
Total
   $ 22,996     $ 11,732  

c) The distribution of income from operations, excluding restructuring and other items, by geographical area was as follows:

   
Three Months Ended
  
   
March 31,
    
March 31,
  
   
2013
    
2012
  
   
(in thousands)
  
Ireland
   $ 12,341     $ (6,296 )
Rest of Europe
     5,557       9,721  
U.S.
     7,790       6,557  
Rest of World
     1,720       1,750  
                 
Total
   $ 27,408     $ 11,732  

d) The distribution of property, plant and equipment, net, by geographical area was as follows:

   
March 31,
    
December 31,
  
   
2013
    
2012
  
   
(in thousands)
  
Ireland
   $ 104,952     $ 110,369  
Rest of Europe
     14,973       16,115  
U.S.
     33,661       32,400  
Rest of World
     9,043       9,489  
                 
Total
   $ 162,629     $ 168,373  

e) The distribution of depreciation and amortization by geographical area was as follows:

   
Three Months Ended
  
   
March 31,
    
March 31,
  
   
2013
    
2012
  
   
(in thousands)
  
Ireland
   $ 4,989     $ 4,495  
Rest of Europe
     1,734       1,980  
U.S.
     3,718       3,402  
Rest of World
     1,015       925  
                 
Total
   $ 11,456     $ 10,802  

f) The distribution of total assets by geographical area was as follows:

   
March 31,
    
December 31,
  
   
2013
    
2012
  
   
(in thousands)
  
Ireland
   $ 472,932     $ 476,159  
Rest of Europe
     225,901       236,305  
U.S.
     482,304       437,756  
Rest of World
     50,083       51,888  
                 
Total
   $ 1,231,220     $ 1,202,108